In Hungary, the first week of August was widely regarded as the most critical period of summer 2026. An even more intense heatwave developed than the one experienced in June, while the output of the Paks Nuclear Power Plant had to be curtailed due to the low water level of the Danube. The combination of high temperatures, rising electricity demand and declining nuclear generation pointed to a significant risk of market tightness.
Electricity prices, however, paint a more nuanced picture. Prices are a useful indicator of system tightness, as high price levels generally occur when available generation capacity and import opportunities are constrained. Our analysis of electricity prices shows that the genuinely critical periods occurred not in August, but earlier, in late June and early July.